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44AD Income Tax Filing Question

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Rachit

Freelancer

21 Points Posted on 06 March 2021

Hi To all the learned members.

Do we need to register a company (sole proprietorship) in order to take the advantage of 44AD ?

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Also, from my payment, TDS is being deducted by the person under 194J, in that case can I file 44AD or 44ADA ?

PS - I want to file for 44AD, let me know if I am eligible for the same.

Replies (3)

Quick Summary

This discussion clarifies eligibility for presumptive taxation under Section 44AD. It addresses whether a sole proprietorship needs formal registration and explains that 44AD is generally for individuals, HUFs, and registered partnerships, excluding LLPs and companies. The thread also touches upon the applicability of 44ADA for specific professions and the impact of TDS under Section 194J on filing choices.

Deepak Kumar

453 Points Posted on 06 March 2021

You have only serving professional services than you have filed under 44ADA not 44AD Gross Receipt up to 50lack

Chirag

Professional

1149 Points Posted on 07 March 2021

44AD explicitly exclude Commission,brokerage ,& Profession prescribed u/s.44AA(1) ,But you can opt for 44ADA. For Presumptive taxation ,Gross Receipts up-to INR 50 lacs and 50% of it shall be Income...without allowing any deduction ,Also note benefit of 44AD allowed only to Individual /HUF and Registered Partnership ( Not LLP & Company ), by the way, No Tax Audit is required if Turnover is up-to 100 Lacs, (500 Lacs If You restrict Cash Transaction up-to 5% only).